Broken Promises: Bankruptcy is advertised as the solution to financial problems.
Bad, lazy or greedy attorneys fail to warn clients about the problems they could face in bankruptcy.
People in financial distress look to attorneys for help and guidance. They assume their attorneys care more about them than about the attorney’s bank account. An attorney is ethically required to have the skill and knowledge in order to offer good advice to their clients. Attorneys are not supposed to take more clients than they can efficiently and professionally assist. Law firms that mass-produce bankruptcies are treating their clients like cattle – herding them into a holding pen for slaughter, with little regard about the legal consequences to those clients (losing their home, tax refunds or inheritance, to name a few problems).
The United States Trustee, the trustees, and their attorneys
The United States Trustee is aware that lawyers and law firms are mistreating their clients, but with few exceptions, they fail to take action to curb the abuses (at least where I practice). Some Bankruptcy Trustees and their attorneys view the debtors as walking cash registers. They keep cases open that should be closed, they collect funds for themselves that should be used pay taxes, the sins go on and on.
“A Bankruptcy Christmas”
For a very insightful expose’ on how bad this process has become – watch Stephen Berken‘s YouTube presentation “A Bankruptcy Christmas“. He is not afraid to call a turd a turd.
MUSINGS FROM DIANE:
The bankruptcy system was designed to help individuals and businesses get a fresh start. That fresh start comes in many flavors – depending on the debtors and their goals. Unfortunately, the process has become so corrupt that some trustee’s attorneys regularly earn approximately ONE MILLION DOLLARS a year (much of that money is from debtors who did not have attorneys or whose attorney abandoned them). The only conclusion is that the process is broken.
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About Diane Drain:
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
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